Many cryptocurrencies have helped many brave traders earn massively. One of such projects that touched unimaginable heights was Terra Luna. The coin was launched in 2020 and by April 2022, Terra touched its all time high of $119.

Terra Luna, often simply referred to as Terra, was founded in 2018 by Daniel Shin and Do Kwon. The founders shared a common vision – to create a decentralized stablecoin that could offer stability, scalability, and sustainability in the volatile world of cryptocurrencies.

Terra’s journey began with the launch of its native stablecoin, TerraSDR (SDR), pegged to the International Monetary Fund’s Special Drawing Rights. This was just the initial step in their grand plan to revolutionize the cryptocurrency ecosystem. With an unwavering commitment to innovation and user-centric design, Terra Luna set out to tackle some of the most pressing challenges in the industry.

It was around May 2022, when the coin was halted twice, leaving people questioning the authenticity of the blockchain. Terralabs another stable coin UST lost its dollar peg and LUNA slumps by more than 99%. The founder of the coin, Do Kwon knew it was high time for rebranding to revive traders trust. This gave birth to Terra Classic (LUNC).

Presently, the price of the coin is at $0.00006105 with a marketcap of $355,594,102. Its total supply is 6,835,086,193,674 LUNC out of which 5,814,688,652,478 LUNC are in circulation. The coin has significantly dropped from its all time high.

In this article, we will discuss the technical aspect of the coin as well as decipher its future for its avid traders.

LUNA 2.0 History: The Inception Story

Founded by Daniel Shin and Do Kwon in 2018, the Terra blockchain was born as the duo focused on stable prices and usability. They were positive that this approach would drive the rapid adoption of blockchain technology and cryptocurrencies.

Earlier in their careers, Daniel co-founded Ticket Monster and Kwon founded Anyfi, a startup that provided decentralized wireless mesh networking solutions after working as a software engineer at Apple and Microsoft. 

At inception, Terra’s blockchain protocol was designed to power price-stable global payments, using fiat-pegged stable coins. By combing the stability and wide adoption rate of fiat currencies and BTCs censorship resistance, the Terra blockchain offers affordable and high-speed settlements.

The Terra ecosystem suffered a liquidity attack that led to the de-pegging of the UST (stablecoin) from LUNA hence the birth of LUNA 2.0 and LUNA Classic (LUNAC) after the community-led proposal.

On May 27, 2022, the Terra community voted in support of Proposal 1623, hence the revival plan that hard-forked Terra into its new Terra blockchain (LUNA 2.0) leaving behind LUNA Classic (LUNAC) the older chain.

The chart picked for technical analysis is Year To Date (YTD) set at 1 day interval. As you can see, the overall price seems to be dropping dramatically since the inception of 2023. On Jan 01, 2023, the price was at $0.0001451. From Jan to Feb first week, LUNC improved and touched $0.0002027. However, the price experienced a pullback the brought the coin to $0.00008437.

The candlesticks are forming a descending channel pattern from January 2023 to August 2023. The pattern is considered a bearish pattern as the sellers are pushing the price of the coin gradually lower.

This pattern can also be considered a period of consolidation after which the token can give a further breakout in a downward direction or a breakout in the upward direction.